Itc reversal on capital goods

244 views 4 replies

Dear sir,

               One of my client purchase motor vehicle for his business during the financial year 2017-18 at that time we take ITC from Motor vehicle.  Now the dealer wants to sale the vehicle due to vehicle damage and loss occur.  What is the procedure to reverse the ITC.  Please guide me

Thanks & Regards

S.Mahendrakumar  

Replies (4)
you cannot take itc on motor vehicle at first place, so you should reverse it and deposit with int

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CA. Ankit singla...... there are certain exceptions to that rule......
You may have to pay full amount of itc taken by you with interest as itc taken in past. You are not eligible to take itc on car was purchased for business.
Not eligible on Motor Cars ! Some exceptions like bus services etc


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